Presentation of the Company

November 2015

The Management Board

Daniel Janusz
President of the Management Board

Piotr Wielesik
Member of the Management Board

Introduction
Products
Process and Product Innovation

Our markets and our projects

Financial data

Quality policy, Our own training facility

Strategy
Summary

Introduction

Strong market position

One of the biggest

manufacturers of complex
grain elevators in Poland
Designed for drying
and storing plant
products (grain,
legume and oil plants,
corn etc.)

Advantage over
competitors / barriers of
entry
A broad portfolio of
products
Modern machinery
Innovative solutions
Costs efficiency
Experience

References

Prospects for further

growth in business scale
and efficiency
Growing demand on
domestic and foreign
markets
Strengthening of sales
network

Development of production
capacity
Improvement of production
efficiency

Innovative solutions

History
Strengthening of the
companys position
on the Polish market
Starting
production in
Feerums
production facility
in Chojnw

Change of main sales

directions and focusing
on:
Building a modern
production facility with
infrastructure located
in LSSE

Design and production

of grain dryers based
on subcontractors

2002

Development of sales
network in Poland

2005

2008-2010

Domestic market
(earlier Belarus was
the main sales market)
Perspective export
markets (Ukraine,
Lithuania, Romania)

2011

Customers
diversification
Project of a
innovative energysaving grain dryer
Construction project
of lightweight steel
silos
Investment program
implementaion 20132015

2012-2015

Debut on WSE

In May 2013, the Company successfully debuted on Warsaw Stock Exchange.

Introduction
Products
Process and Product Innovation
Our markets and our projects
Financial data
Quality policy, Our own training facility

Strategy
Summary

Main product groups

SILOS

GRAIN DRYERS

EQUIPMENT

The Company has got a wide range of products and components (in total 27,000
components) and can fulfil customers demand in a complex way
8

Laboratory equipment for testing the quality of grain

Laboratory container

Rakoraf

Separator for pollutions control

Grain counter

Humidity controler

Grain analyzer

Grain Cooler type FAS- 150

Grain cooler type FAS-150 for cooling and drying grain

Cooler is designed assuming work in external

conditions during periods of increased temperatures.

Eco-friendly, safe refrigerant selected with a view to use

in varying outdoor conditions (rain, fog).

The use of chassis design equipped with drive module

allows for an easy movement of the device.

Construction of the unit is made of powder-coated

steel, providing very good protection against corrosion
and sufficient strength.

10

Technological scheme of the elevator

11

Complex solutions

9-12 months

Design work
and
preparations

Production
process
(steel machinig,
welding, metalwork,
storage)

Complex
construction
(construction and
assembly works)

Aftersale
services

Complex solutions- turnkey building according to customer needs

Corrugated construction steel, highly durable
Using our owns components

Short terms of delivery

Innovation
Top quality
12

Complex contracting, construction and assembly.

1. Land for investment.

3. Construction and assembly works.

2. The designed site development plan

4. Planning, designing, production, implemention.

13

Complex contracting, construction and assembly.

Design works carried out under the
supervision of Chief Design Officer
performed by multiindustry team of
designers who have a licence to design
without restrictions.

While implementing the projects we

invite local contractors to cooperate.
Construction and assembly works are
carried out under the leadership of
Construction Director with qualified
technical staff
14

Start-up of the facility and training of the operators.

Employees of the Investment Implementation
Department and Electric Engineering and Automation
Department are responsible for:

Start-up of the facility at the customers site,

Transfer of technical documentation of

equipment and technological schemes,

Training for customer's employees in the

following area:

facility control software and equipment

operation,
maintenance works while using the facility,
use of laboratory equipment to control the
parameters of grain.

Each object has a visualization of technological

connections - view of operating conditions of
equipment, grain flows - providing intuitive operation.

15

Aftersale service

Depending on the market Feerum uses its own or trained local

service groups,

The service includes periodic maintenance inspections,

With remote access to control applications:

remote diagnostics,
modification of operating parameters of the facility
are possible.

Feerum offers unlimited access to spare parts due to the

standardization of devices
The flexible modular control system allows the a complex
extention.
Data archiving enables the analysis of devices, evaluation of the
grain drying and storing proces.

16

Introduction
Products

Process and Product Innovation

Our markets and our projects
Financial data
Quality policy, Our own training facility
Strategy
Summary

17

State- of-the- art machinery

1

New production facility

Started in 2010, developed in 2013

Localisation: LSSE
3.5 ha area (20,000 m2 production
hall)
Machinery park- CNC computer
technology, robotised production
cells
Steel machining (including
construction, highly durable)

22

First production facility

Started in 2005
3,500 m2 area
Welding, metalwork, assembly

Precision, reliability, decrease breakdown rate

18

Innovative technology solutions

Innovations put into practice

Construction, highly
durable steel

Production of side metal

sheets in automatic cycle
from the coil

New solutions in drying

equipment (grain dryer
with air recirculation)

20%
decreased weight
(transportation equipment)

Reduction of labour intensity

Reduction of gas
consumption in drying
process

Nowadays realisations
Optimalisation of construction of
light
2013 r.steel silos

Innovative, energy-saving grain dryer

with heat exchanger and integrated dust
removal systems

2013 - 2015

2013 - 2014
19

Innovative grain dryer

R&D

Period of
realisation

Value of the
project*

Granted
subsidies*

2012 - 2015

7.4

4.1

Costs of the
project*

9.6

Granted
subsidies*

3.69
* mln PLN

R & D for the development of a prototype energy-saving dryer with heat exchanger and
integrated dust removal system were finished with complete success;

26,3
The objectives and results planned at the conceptual stage of the project
were achieved and a
developed prototype has the characteristics and parameters of innovation in the world;
The prototype is characterized by less energy consumption, lower weight and significantly
reduced degree of impact on the environment, due to reducing noise (silencers in fans) and
particulate emissions (interception of volatile impurities);
As a result of the project the patent application for tubular heat exchanger gas-gas
(Application No. P.409856 dated 10.20.2014 ) and for the invention strainer discharging
particles after the drying process of grain (Application No. P.409855 dated 20.10.2014);
According to the schedule the introduction phase will be implemented in the period July 2015March 2016.
20

Constructions of light steel and steel- textile silos

Period of
realisation
R&D

2014 - 2016

Value of the
project*

8.1

Granted
subsidies*

Costs of the
project*

Granted
subsidies*

4.5

10.1

2.91
* mln PLN

The total value of net expenditure of the project is 8.1 million PLN,
and the recommended amount of funding is 4.5 million PLN
The industrial research is completed in the following area:

Rys 1 Prototype silos

13,6

Development of construction and technological assumptions of research models

Verification of the concept assumptions with design of the project documentation and
research models
Calibration and integration of air pressure sensors with research models and preliminary
versions of prototypes
Optimization of the construction light steel silos with a view to reduction in weight of
elements used
Reduction of labour intensity by reducing the number of components
Optimization of constration with a view to reduction of difficult and energy-consuming
technology
Optimization the geometry of the constraction elements in terms of transport capacity

The result of the project is patent application for a method for

connecting the vertical stiffeners of silo coat, especially made of
corrugated sheets and vertical stiffeners with an open section and
connector of vertical stiffener of silo metal coat, especially with
corrugated sheet (Application No. P.410583 dated 12.17.2014 )
Work related to the building of the prototypes of silos is finished
21

Integrated grain storage- drying complex

Inwestycje

Period of
eealisation

Value of the
project*

Granted
subsidies*

Costs of the
project*

Grnted
subsidies*

2014 - 2016

13.8

6.2

11.04

5.92
* mln PLN

The total value of the project's total net expenses is

13,840,000 PLN, and the recommended amount of
funding is 6,228,000 PLN

13,6

As part of the project:

specialized software - CADMAN - P PDM Solidworks was
purchased,
Robot was installed on the punching machine
Robot was installed on the bending machine
Robotic station for welding fittings werecmounted
The line for forming profiles is under installation

22

Costs efficiency
Production process

Innovative technological
solutions

Investments outlays on building

and development of new factory
amount to 80 mln PLN.

Steel machining
Metalwork

Localisation in LSSE

Efficiency of
production

Welding
Assemb
ly

Reproducibility of schemes

Manufacture
costs
Labour intensity
Logistics costs

Automation
Minimalisation of welding
works
Outsourcing
23

Introduction
Products
Process and Product Innovation

Our markets and our projects

Financial data

Quality policy, Our own training object

Strategy
Summary

24

Sales organisation
Poland, Germany, Czech Republic, Hungary, Romania, Moldova direct sale

Lithuania, Belarus, Ukraine, Mongolia indirect sale (dealer network)

Each salesman has

basic project
knowledge, planing
and technical
abilities and
knowledge of
technology

25

POLISH MARKET
The key market of Feerum
activity is Polish market, in
which there was 84% of sale in
first Q3 2015.

26

FARMER

An example facility:
Comprehensive laboratory equipment
6 flat bottomed silos - 1000t / each.
2 buffer silos - 250t / each.
1 forwarding silo - 60t,
1 dryer with a capacity of 600t of wheat / day,
1 reecleaner l with a capacity of 60t of wheat / day,
27

Jzef Jurkiewicz

An example facility:

6 flat bottomed silos- 3500t/ each,

1 grain dryer with a capacity of 2200t wheat/day,

1 cleaner with a capacity of 150t wheat/day,

Loading- unloading devices with a capacity of 130t/h

28

MYNPOL

Above an example facility at the mill:

8 flat bottomed silos - 8600t/ each,

6 hopper bottomed silos- 900t/ each,

1 grain dryer with a capacity of 1500t wheat/day,

Loading- unloading devices with a capacity of 130t/h

29

FOREIGN MARKETS
BELARUS: Feerum SA began
to "conquer" the Belarusian
market in 2006 when it
completed its first investment.
Since then about 50 warehouse
facilities and storage - drying
with an average capacity of
1000 to 25000 tonnes have
been built. The scope of the
works carried out by the
company
includes
a
comprehensive implementation
of investments, from design to
construction and maintenance
services.

30

So

An example facility:
10 flat bottomed silos - 2500t/ each,
1 forwarding silo - 68t,
1 grain dryer with a capacity of 1020t wheat/day,
1 cleaner with a capacity 60t of a wheat/day
31

Ogrodniki

An example facility:
6 flat bottomed silos - 1500t/ each,
1 forwarding silo - 68t,
1 buffer silo- 450t
1 grain dryer with a capacity of 1020t wheat/day,
1 cleaner with a capacity of 60t wheat/day.

32

FOREIGN MARKETS

UKRAINE is one of the main recipients of the range produced by Feerum SA. The
expansion into the Ukrainian market began in 2004 and so far we have built about
40 objects. The scope of work includes the design of a technological project and
foundation guidelines for the construction project, construction on the customer site,
and thus putting the object for use. In short, Feerum is responsible for the
comprehensive implementation of the investment.

33

Kozowa

An example facility:
6 flat bottomed - 7700t/ each,
1 grain dryer with a capacity of 1020 t wheat/day.

34

Teofipol

An example facility:

9 flat bottomed silos 4800t/each

2 hopper bottomed silos - 500t/ each.

35

FOREIGN MARKETS

MONGOLIA: Feerum expanded iinto the territory of Mongolia, where in 2014 were
built one facility on the steppes near the border with China. The work were often
carried out in harsh conditions (sandstorms), which did not delay delivery on time.
There are ongoing further business talks aiming at increasing sales on the
aforementioned market.
36

Mongolia

An example facility:
4 flat bottomed silos 2600t/each
1 buffer silo - 530t
1 grain dryer with a capacity of 1500t/day

37

FOREIGN MARKETS

GERMANY: Feerum has completed the construction of a storage facility

with a total capacity of approx. 3,000 tons. It consisted of hopper
bottomed silos, transport equipment 80t / h and pre-cleaner.
38

Introduction

Products
Process and Product Innovation
Our markets and our projects
Financial data
Quality policy, Our own training facility
Strategy
Summary

39

Sales revenues
Sales revenues (thousand PLN)

100 000

94 378

90 000
80 000
70 000
60 000

The increase in sales

revenues resulted from
the high backlog.

86,8%
50 522

50 000
40 000
30 000
20 000
10 000
0
III kwartay 2014

Source: The quarterly report for the period from 1 January 2015 to 30 September 2015 years

III kwartay 2015

40

Breakdown of sales revenues by Geographical Markets

Przychody
(mln PLN)

Thousand PLN

III Q 2015

III Q 2014

Change
(thousand PLN)

Change (%)

Poland

79 270

40 120

+ 39 149

+ 97,6%

Export

15 108

10 402

+ 4 707

+ 45,2%

Total

94 378

50 522

+ 43 856

+ 86,8%

III Q 2015

III Q 2014

16%

21%

Eksport

Eksport

Polska
84%

Source: The quarterly report for the period from 1 January 2015 to 30 September 2015 years

Polska
79%

41

Key financial data for 3Q 2015

thousand PLN

III Q 2015

III Q 2014

Change
(thousand PLN)

Change (%)

Sales revenues

94,378

50,522

+ 43,856

+ 86.8%

Gross profit on sales

17,449

10,726

+ 6,723

+ 627%

EBITDA

14,876

8,728

+ 6,149

+70.4%

EBIT

9,911

5,612

+ 4,298

+76.6%

Gross profit

9,850

5,238

+ 4,612

+88.0%

Net profit

9,189

5,010

+ 4,178

+83.4%

Source: The quarterly report for the period from 1 January 2015 to 30 September 2015 years

42

Balance sheet on 30th September 2015

Assets

Liabilities

Main positions:

Inventories 36.3 mln

Receivables 23.9 mln
Cash and cash equivalents
13.1 mln

Main positions:
Current
89,2 mln PLN
(46,2%)

Non-current
103,8 mln PLN
(53,8%)

Liabilities
89,2mln PLN
(46,2%)

Current trade liabilities

18.7 mln

Long-term loans 17.2

mln

Long-term deferred
income 18.8 mln

Equity
103,8 mln PLN
(53,8%)

Total assets: 193,0 mln PLN

Source: The quarterly report for the period from 1 January 2015 to 30 September 2015 years

43

Introduction
Products
Process and Product Innovation
Our markets and our projects
Financial data
Quality policy, Our own training facility
Strategy

Resume
44

Politics of quality
Feerum SA has implemented and certified Production Control and is in the final stage of
implementation of the Integrated Management System according to ISO 9001: 2009 and 14001: 2007
Quality control department, regardless of the production department is responsible for the constant
verification and maintenance of the internal quality management system. This deparment is responsible
for the control of the input raw material immediately after receiving the materials.
The in process conrol is also implemented in the production facility. The result of the implementation of
the production quality management system is precision of welded components in accordance with the
strict requirements of customers, with particular attention to the tolerance of dimensions, surface
quality, durability and finishing. In the final stages of the production process tests are made with the
finished product in order to verify its conformity with the specifications of the customer.
Quality Policy implemented in Feerum is based on the following assumptions:

Knowledge of customer requirements.

Compliance with applicable regulations for products and processes.

Constant improvement in the quality and efficiency of processes.

Satisfaction in the relationship Customer internal Supplier.

Securing relationships with external suppliers.

Supporting actions to prevent production errors and defects.

Using the identified errors and shortcomings as an opportunity for improvement.

Balancing competition among the team of employees.

Constant improvement of the efficiency of the Internal Quality Management System.

45

Training facility

Feerum has got its own Research and Traning facility.

Elements of the facility:

2 flat bottomed silos total 21,834 m3,
4 hopper bottomed silos total 3794 m3,
Hopper bottomed silo for a spedition and
2 brand new grain dryers with heat exchanger with a capacity of 1200 t/day.
46

Training facility

Thanks to training facility we can train our client/ operators in area of:
Knowledge of the facility,
Knowledge of the equipment of the operator stand and all technological equipment
of the facility,
Knowledge of operators duties,
Knowledge of Maintenance Manual,
Knowledge of applicable OHS and fire safety regulations.
47

Introduction
Products
Process and Product Innovation

Our markets and our projects

Financial data

Quality policy, Our own training facility

Strategy
Summary

48

Strategy
Becoming a significant participant
in the European market
Dynamic growth of
business scale

Sales on domestic and

foreign markets

Reinforcement of
sales network and
design department

Intensifiction of sales
activities on foreign
markets

Modern technologies and

development of production
base

Development of
production base

Investment in
modern technological
solutions
49

Introduction
Products
Process and Product Innovation
Our markets and our projects
Financial data
Quality policy, Our own training facility

Strategy
Summary
50

Summary
1

Strong market position

Implemented quality policy and own Research and Training facility

State-of-the-art machinery - top quality of production

Innovative technological solutions- quality advantage

Costs efficiency

Flexible production proces and wide range of products

Experienced and highly qualified staff- quick and comprehensive solutions in

respone to our customers needs

Strong financial position

51

Owners structure

Shareholders having over the 5% in the total number of shares

Number of

Share in share

shares

capital

3 255 551

34,1327%

Direct

690 138

7,2357%

Indirect (by Macalado Ltd)

2 565 413

26,8970%

3 137 615

32,8962%

Direct

660 654

6,9266%

Indirect ( by Chikao Ltd)

2 476 961

25,9696%

ING PTE

1 769 419

18,5514%

Others

1 375 331

14,4196%

9 537 916

100,00%

Shareholder

Daniel Janusz

Magdalena abudzka-Janusz

Total

52